Mortgage calculator
Estimate your monthly payments in seconds.

How Our Mortgage Calculator Works

Our mortgage calculator is a simple, fast, and completely free tool that lets you calculate your mortgage payments online, with no obligation. Just enter the loan amount, the interest rate you’re considering, the amortization period, and your preferred payment frequency. The tool instantly returns the amount of your mortgage payment based on the parameters you’ve chosen.

This mortgage calculator gives you an approximate estimate to help you plan. The exact figures will be determined by your lender or financial institution at the time of mortgage pre-approval.

The tool does not include the CMHC mortgage loan insurance premium or the municipal and school taxes, which are added to the final calculation depending on your situation. To estimate these costs alongside, see our welcome tax calculator.

The Variables That Influence Your Mortgage Payments

Understanding the variables that make up a mortgage calculation lets you compare scenarios and make an informed decision before signing an offer to purchase.

The Purchase Price and the Down Payment

The loan amount is the property’s purchase price minus your down payment. The larger your down payment, the smaller the principal to repay and the lower your monthly payments. In Canada, the minimum down payment is 5% for properties under $500,000, but a larger down payment lets you avoid mandatory CMHC mortgage loan insurance. If you’re selling your current property to buy another, use our free online evaluation tool to estimate your available down payment. For a better grasp of your property’s true value, read our article on market value vs municipal assessment.

The Amortization Period

The amortization period is the total time planned to fully repay your mortgage. Most mortgages in Canada have a maximum amortization of 25 years for mortgages with less than 20% down payment, and a maximum amortization of 30 years for those with a down payment of 20% or more. A longer amortization reduces your monthly payments but increases the total interest paid over the life of the loan. Conversely, a shorter amortization saves you on interest but requires higher monthly payments. The amortization schedule provided by your lender lets you see how each payment splits between principal and interest over time.

The Interest Rate: Fixed or Variable

The interest rate has the biggest impact on the total cost of your mortgage. You have two main options:

• Fixed rate: the rate stays the same for the entire mortgage term (often 5 years). Your payments are predictable and stable.
• Variable rate: the rate fluctuates based on Bank of Canada decisions and your financial institution’s prime rate. It’s generally lower at the outset, but it can rise or fall during the term.

The mortgage term (1 to 10 years) is different from the amortization period: it’s the length of time your rate is guaranteed. At the end of the term, you renew your mortgage at the rate in effect at that time.

Payment Frequency

How often you repay your mortgage directly influences the total interest you’ll pay. The most common options are:

• Monthly payment (12 payments per year)
• Bi-weekly payment (26 payments per year)
• Accelerated bi-weekly payment (26 payments equivalent to 13 monthly payments)
• Weekly payment (52 payments per year)
• Accelerated weekly payment (52 payments equivalent to 13 monthly payments)

Accelerated payments let you save on interest and shorten your amortization period by several years without significantly weighing on your budget.

The Minimum Down Payment in Quebec and Canada

Federal rules set the minimum down payment for all buyers across Canada, regardless of province. Here are the current thresholds:

• 5% down payment on the first $500,000 of the purchase price
• 10% down payment on the portion between $500,000 and $1,500,000
• 20% minimum down payment for properties of $1,500,000 and over

For a first-time buyer targeting a $1 million property, for example, the minimum down payment is therefore $75,000 (5% on $500,000 + 10% on $500,000). A down payment below 20% automatically requires you to take out CMHC mortgage loan insurance, which is added to the loan amount.

CMHC Mortgage Loan Insurance

Mortgage loan insurance from the Canada Mortgage and Housing Corporation (CMHC) is mandatory for any buyer whose down payment is less than 20% of the purchase price. It protects the financial institution in case of default, and it has two direct consequences for you: it lets you purchase a property with less initial capital, and it increases the total amount of your mortgage.

The mortgage insurance premium varies based on your loan-to-value ratio — the ratio between the loan amount and the property’s value. The smaller your down payment, the higher the premium. In Quebec, the CMHC premium is added to your principal balance and repaid through your monthly mortgage payments, but the GST and QST on this premium must be paid in full at signing, along with your other closing costs.

Mortgage Pre-Approval: Why It’s Essential Before You Buy

Even before you visit a property, getting a mortgage pre-approval from a financial institution or a mortgage broker is a strategic step. It lets you know your real purchasing power, locks in your interest rate for 60 to 120 days, and gives credibility to your offer to purchase in multiple-offer situations.

Without pre-approval, you risk visiting properties beyond your budget or losing a transaction to a better-prepared buyer.

Once you have your pre-approval, the next step is to choose the right real estate broker for your purchase — someone who will support you through the search, the negotiation, and the signing.

Other Costs to Plan for Beyond the Mortgage

Your mortgage payments are only part of your home-buying budget. At signing with the notary, several closing costs are added to your down payment:

• Real estate transfer duties (welcome tax), paid once after signing
• Notary fees, generally between $1,200 and $2,500 depending on the complexity of the file
• Pre-purchase inspection fees (between $500 and $1,000)
• Municipal and school taxes, adjusted on a pro-rata basis
• GST and QST on the CMHC premium if applicable
• Moving and setup costs

If you’re selling your current property to buy another, don’t forget the real estate broker’s commission on the sale, which is deducted from your available down payment. To sell your property in Montreal at the best price, professional support remains your strongest asset.

Frequently Asked Questions About the Mortgage Calculator

H3: How Do You Calculate Your Monthly Mortgage Payments?

To calculate your monthly mortgage payments, you need to know four things: the loan amount (purchase price minus down payment), the interest rate negotiated with your lender, the chosen amortization period, and the desired payment frequency. Our mortgage calculator does the math automatically and returns the exact amount of your monthly payment, which combines principal repayment and the interest paid to the lender.

What’s the Difference Between a Fixed Rate and a Variable Rate?

A fixed rate stays the same for the entire mortgage term (often 5 years), which makes your payments perfectly predictable. A variable rate, on the other hand, fluctuates based on your financial institution’s prime rate, which is itself influenced by Bank of Canada decisions. The variable rate is generally lower at the outset but carries the risk of an increase. The choice between the two depends on your risk tolerance and the anticipated direction of interest rates.

Why Is CMHC Insurance Mandatory Below 20%?

Mortgage loan insurance from CMHC is mandatory for any mortgage with a loan-to-value ratio above 80% — meaning a down payment of less than 20% of the purchase price. This insurance protects the lender in case of default and lets them accept a riskier loan. In exchange, the buyer can access homeownership with less initial capital but takes on the cost of the CMHC premium added to the total loan.

How Much Can I Borrow to Buy a Home?

The maximum amount you can borrow depends on your income, your existing debts, your available down payment, the prevailing interest rate, and the amortization period chosen. Financial institutions use two ratios to determine your purchasing power: the Gross Debt Service ratio (GDS) and the Total Debt Service ratio (TDS). For a precise and personalized answer, ask for a mortgage pre-approval from your lender or a mortgage broker. If you’re considering buying an income-generating plex, see our guide on investing in a rental property in Montreal.

What Does a Monthly Mortgage Payment Include?

A monthly mortgage payment includes two main components: the principal repayment (the portion of your loan) and the interest paid to the lender. If your down payment is below 20%, the CMHC insurance premium is built into the loan amount and therefore spread across all your payments. Some financial institutions also offer payments that include municipal and school taxes, which simplifies monthly budget management. At the start of the amortization period, the interest portion is higher than the principal portion, and the ratio gradually reverses over time.